When a house is sold subject to contract, it means that the property has been sold, but the sale is still subject to certain conditions being met. This condition typically means that the sale is contingent on the buyer obtaining financing or completing a home inspection.
It is important to note that a property sold subject to contract is not the same as being sold outright. The sale is still subject to conditions that need to be met before the deal is finalized. This means that the seller is still able to accept other offers, but is obliged to inform prospective buyers that the property is currently under contract.
Typically, when a property is sold subject to contract, the buyer will be given a certain amount of time to meet the set conditions. If the buyer fails to meet the conditions within the agreed timeframe, the sale may be canceled.
On the other hand, if the conditions are met, then the sale will proceed, and contracts will be exchanged. This is when the sale becomes legally binding, and the buyer becomes the rightful owner of the property.
So, what are the benefits of selling a property subject to contract?
For one, it gives the seller the opportunity to continue receiving offers, and if a better offer comes along, they can opt out of the current sale and pursue the better offer. Also, it allows the buyer to secure the property while completing the necessary steps, such as securing financing or arranging for a home inspection.
In conclusion, when a house is sold subject to contract, it means that the property has been sold, but the sale is still subject to certain conditions. It is a useful option for both buyers and sellers as it allows the sale to proceed while ensuring that all legal requirements are met. As a seller, it is essential to work with a reputable real estate agent who can guide you through the process and ensure that all legal requirements are fulfilled.